Pension Schemes Bill

Lord Willetts Excerpts

Committee stage
Wednesday 14th January 2026 Grand Committee

[Lord Willetts (Con)]

I have one question following the Minister’s very helpful explanation. I was involved in the internal government discussion leading up to the 2013 legislation, and at the back of our minds was the whole issue of merging local government pension schemes for economic and investment reasons. The model that emerged of seven or eight umbrella bodies shaping their investment strategy was seen as the best way to deliver that. The Minister’s list of reasons why there might be compulsory mergers excluded any investment or economic argument, so is he assuring the Committee that the Government do not envisage using these powers to secure specific economic or investment objectives?

[Lord Katz (Lab)]

I am seeking help from my noble friend Lady Sherlock in a helpful conference on the side. The investment assets are in pools, so that is not necessary. The backstop powers are very clear: if there is a need for a merger or we are worried about a failing scheme, there is that backstop power and this is why. It would not be used to direct particular investment strategies.